SAN FRANCISCO— Affirm Holdings , Inc. (NASDAQ:AFRM) President Libor Michalek recently executed a series of stock transactions, as reported in a Form 4 filing with the Securities and Exchange Commission. Michalek sold shares of Class A common stock worth approximately $13.6 million. The shares were sold at prices ranging from $68.09 to $70.01 per share.
The transactions took place on November 22 and November 25, 2024. Following these sales, Michalek's direct ownership stands at 159,449 shares. Additionally, Michalek exercised stock options on two occasions, acquiring a total of 197,153 shares at an exercise price of $8.80 per share. These exercises were part of a pre-established trading plan adopted on December 13, 2023, under Rule 10b5-1.
The sales and acquisitions reflect Michalek's ongoing management of his holdings in Affirm Holdings, a company known for providing financial technology services.
In other recent news, Affirm Holdings Inc. has been making significant strides in the financial sector. BofA Securities has raised its price target for Affirm from $50 to $74, maintaining a Buy rating. This adjustment comes as Affirm demonstrates robust growth in gross merchandise value (GMV), outperforming competitors such as Afterpay and Klarna. Affirm's Residual Loan to Cost (RLTC) performance is reported to be at the high end of its target range of 3-4%, indicating strong profitability of its loan portfolios.
Furthermore, Affirm's trajectory for operating profitability is looking positive, with projections indicating potential for positive GAAP operating income by the second quarter of 2025. Mizuho (NYSE:MFG) Securities has also shown confidence in Affirm, raising its price target on the company's stock to $69 from $65, while maintaining an Outperform rating. These adjustments follow Affirm's strong first-quarter results, with projected adjusted operating income margins between 21% and 23%.
In addition, Affirm is preparing for a UK market launch, aiming to meet the demand for long-term payment products. Lastly, Affirm has partnered with Visa (NYSE:V) to introduce a new payment feature in the United States called "Flexible Credential," allowing users to access multiple accounts and funding sources with one card. These recent developments underscore Affirm's strong position and growth potential in the financial sector.
InvestingPro Insights
The recent stock transactions by Affirm Holdings' President Libor Michalek come at a time when the company's stock is showing significant momentum. According to InvestingPro data, Affirm has experienced a remarkable 152.65% price total return over the past year, with particularly strong performance in recent months. The stock has seen a 62.83% return in the last month alone, and a 107.87% return over the past three months.
These robust returns align with two key InvestingPro Tips: Affirm has shown a "Significant return over the last week" and a "Strong return over the last month." This positive momentum may have influenced Michalek's decision to exercise options and sell shares at the current price levels.
However, investors should note that the stock's rapid ascent has pushed it into potentially overvalued territory. An InvestingPro Tip indicates that the "RSI suggests the stock is in overbought territory," which could signal a potential pullback in the near term. Additionally, with a Price / Book ratio of 7.68, Affirm is "Trading at a high Price / Book multiple," suggesting that the market has high growth expectations for the company.
Despite the strong stock performance, it's important to note that Affirm is not currently profitable. The company reported an operating loss of $533.17 million over the last twelve months, with a negative operating income margin of 21.12%. This aligns with another InvestingPro Tip stating that "Analysts do not anticipate the company will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Affirm Holdings, providing a deeper understanding of the company's financial health and market position.
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